Pledged as part of the “grand bargain” that would allow the city to retain the Detroit Institute of Arts collection and better fund pension liabilities, the $350 million from the state has gone largely undiscussed since Gov. Rick Snyder included it in his 2014-2015 budget proposal in February.
The funds would be paid in $17.5 million installments over 20 years, the governor proposed, and would need legislative approval as part of a budget. And now, Snyder tells the Detroit Free Press, if that doesn’t come by May, it could not come at all.
…if the Legislature breaks for the summer without acting on the funding question, “that would make it extremely difficult, period,” Snyder told the Free Press.
Technically, the legislature could do a “Detroit deal” as a standalone bill, but usually that is much more difficult to get through. With legislators largely from out-state, widespread support for the deal seem unlikely at best. In addition, legislators might be waiting to see what concessions, if any, pensioners agree too.
“I’m really looking to them to take the point on this in terms of saying, can they come to some agreement?” Snyder said. “If there’s an agreement, then it would be a much better process to get through the legislative process.”
Clearly, the bankruptcy has lot of moving parts.